A jumbo loan is a type of loan that is based on your credit card but at the same time, it will allow you to borrow money from HDFC Bank without hampering your credit card limit. You can also use your credit card to make purchases and use a Jumbo loan to access additional funds beyond your regular credit card limit for specific financial needs. In this article, you will get the complete information on: How to Close HDFC Jumbo Loan?
What is a Jumbo Loan in HDFC Bank?
A Jumbo Loan, offered by HDFC Bank, is a unique “access to credit” solution designed to provide customers with the flexibility to borrow funds beyond their existing Credit Card limit.
Unlike regular credit card loans that may impact or reduce the credit card limit, the Jumbo Loan allows individuals to access additional funds without constraints on their regular spending capacity. This innovative financial tool ensures a balance between borrowing and day-to-day transactions. Discover the freedom to extend your financial reach with HDFC Bank’s Jumbo Loan.
Difference Between a Jumbo Loan and an Insta Loan
| JUMBO LOAN | INSTA LOAN |
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Features of HDFC Jumbo Loan
- Loan Amount: Access to a loan amount equal to or higher than your credit card limit.
- Credit Limit Flexibility: Your credit card limit remains unaffected or can even be increased.
- Uninterrupted Spending: The Jumbo Loan feature doesn’t block, allowing continuous spending even after exhausting the credit limit.
- Ideal for Larger Needs: Suited for more significant or extended financial requirements.
- Quick Disbursement: Quick loan disbursement process as it is often pre-approved.
- Minimal Impact on Credit Card: This does not impact regular credit card transactions.
- Pre-closure/Foreclosure: Option available with a nominal fee for closing the loan at any time.
- Application Convenience: This can be applied through various channels, including online portals, NetBanking, or PhoneBanking.
Some Important Things to be Noted
- HDFC does not charge GST on the Insta Jumbo loan but does so for the Insta Loan and Smart EMI.
- If the bank is offering “zero processing fees” then you might get that loan without any processing fees.
- When you apply for an Insta Jumbo Loan, HDFC provides a document in your email inbox called “INSTA JUMBO LOAN AMORTIZATION SCHEDULE” – it details the monthly EMI for clear communication about repayment.
How to Close HDFC Jumbo Loan?
Here’s the step-by-step process to close an HDFC Jumbo loan within minutes! Check that out below –
Step 1: Option 1 – Closing via Phone Call
- Call the HDFC Bank’s customer care (1800 202 6161) of the credit card division.
- Request to close the Insta Jumbo Loan on your credit card.
- Obtain the account number provided by the customer service representative.
- Deposit the outstanding amount, including a loan pre-closure charge (3% of the outstanding amount), within a specific period.
Step 2: Option 2 – Closing via Online Portal (Mobile Only) | HDFC Insta Jumbo Loan Pre-Closure Online
- Visit mycards.hdfcbank.com using a mobile phone.
- Log in with your mobile number and OTP.
- Click on your credit card name or number.
- Navigate to “Linked EMIs” and select your loan. It will show your loan number and loan amount.
- Choose the option “Loan Pre Closure.” You will find it below.
- Select a reason for closure, click “continue,” and pay the remaining amount with a 3% pre-closure charge.
Please note that the online portal is mentioned to work only on a mobile phone, not on a computer.
HDFC Jumbo Loan Pre-Closure Charges
- Currently, 3% of the balance principal outstanding will be applicable.
HDFC Jumbo Loan Closure Contact Number
- HDFC Bank Customer Care Number: 1800 202 6161 / 1860 267 6161
HDFC Bank Jumbo Loan Terms and Conditions
Below we have summarised the Terms and Conditions of Insta Jumbo Loan so that you can understand it better in an easy way.
- The loan approval is at the discretion of HDFC Bank.
- For the first EMI, interest is calculated from the loan booking date to the payment due date. Subsequent EMIs follow the statement cycle.
- Acceptance of the loan implies unconditional agreement to terms and conditions.
- Only specific HDFC Bank Credit Card customers are eligible, subject to internal policy and guidelines.
- CIBIL Verification is done post-application, and only CIBIL Good Customers proceed further.
- Customer details on the Credit Card and Savings account must match for instant credit. Otherwise, processing occurs on the next working day after internal checks.
- If the loan is availed through a Demand Draft, it takes 7 working days for delivery. Note that if your credit card statement date falls in this period, the first EMI will be billed in the statement.
- If your savings account lacks sufficient funds, charges will apply. Auto Debit return penal interest of 2% on the payment amount (minimum Rs.300) will be levied.
- Customers without an HDFC Bank Savings Account will have a new account for Insta-Jumbo Loan generated on their Credit Card.
- EMIs are to be paid separately through a cheque, mentioning the 16-digit Jumbo Loan number. This payment is separate from the primary HDFC Bank credit card bill.
- Skipping the payment due date incurs charges. Penal interest of 2% on the payment amount (minimum Rs.300) will be levied.
- Non-payment or partial payment of EMI attracts a late payment penalty of Rs.500 plus GST, irrespective of the EMI amount outstanding.
- Processing fees are levied during the immediate billing cycle post-loan disbursement.
- The loan is secured against accidental death, covering the outstanding principal. The nominee/appointee needs to inform the bank about the demise to initiate a claim with the insurance company.
- Partial pre-payment or closure is not permitted on this loan. The loan can only be pre-closed, and a charge of 3% of the balance principal outstanding will be applicable.
- GST is applicable on processing fees and pre-closure charges.
In conclusion, HDFC Bank’s Jumbo Loan stands out as an outstanding option for customers to access funds beyond their standard credit card limit. While the loan process is often quick and pre-approved, it’s essential to be aware of nominal fees associated with pre-closure or foreclosure.
FAQs:
Q1: What is the difference between Insta Loan and Jumbo Loan?
- Insta Loan: It has a lower loan amount, and the feature is automatically blocked if it exceeds the credit card limit. Suited for short-term needs.
- Jumbo Loan: Offers a loan amount equal to or higher than the credit card limit. The feature remains accessible even after exhausting the credit limit, suitable for larger financial needs.
Q2: Does HDFC Bank charge GST on its loans?
- Insta Jumbo Loan: No GST is charged.
- Insta Loan and Smart EMI: GST is charged.
- A processing fee for Insta Jumbo Loan attracts an 18% GST charge.
Q3: What happens if there are insufficient funds in the savings account for loan repayment?
- Auto Debit return penal interest of 2% on the payment amount (minimum Rs.300) will be levied.
Q4: Can customers without an HDFC Bank Savings Account apply for Insta-Jumbo Loan?
- Yes, a separate new account for Insta-Jumbo Loan will be generated on the Credit Card. EMIs need to be paid separately through a cheque.
Q5: What charges apply for late payments or skipping the payment due date?
- Penal interest of 2% on the payment amount (minimum Rs.300) will be levied.
Q6: Is there any penalty for non-payment or partial payment of EMI outstanding?
- Yes, a late payment penalty of Rs.500 plus GST will be levied, irrespective of the EMI amount outstanding.
Q7: Is there an Accidental Death Insurance coverage for the loan?
- Yes, the loan is secured against inevitable/ unforeseen accidental death. The customer’s liability is covered, and a claim can be raised with the insurance company.
Q8: Can the loan be partially pre-paid or closed?
- No, partial pre-payment or closure is not permitted. The loan can only be pre-closed with a charge of 3% of the balance principal outstanding.
Q9: What charges are applicable for loan pre-closure?
- A charge of 3% of the balance principal outstanding is applicable along with pro-rata interest. GST is also applicable on processing fees and pre-closure charges.
Q10: How does HDFC Bank ensure transparency in communication during the loan application?
- When you apply for an Insta Jumbo loan, HDFC Bank sends a document called “INSTA JUMBO LOAN AMORTIZATION SCHEDULE,” listing details of each month’s EMI.
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